Hey everybody, welcome back to the Elon Musk podcast. This is a show where we discuss. The critical. Crossroads the shape. SpaceX. Tesla X, The Boring Company, and Neuralink and I'm your host Will Walden. If you want uninterrupted episodes of the Elon Musk podcast, please go to clubelon.supercast.com to find out how. There's a. Link in the show notes.
So Tesla is intensifying its efforts in artificial intelligence by planning a new $500 million Dojo supercomputer at its Gigafactory in Buffalo, NY. Now, Tesla's broader ambitions here in the AI space show that it's moving beyond its core electric vehicle business, and the Dojo supercomputer is key for AI model training, showcasing the crucial role of computing power in AI
advancements. Now the project to build a second Dojo computer is not only a significant step for Tesla, but also benefits its suppliers, notably NVIDIA and Taiwan Superconductor Manufacturing Company, or TSMC.
Now VIDIA, which provided the GP US for Tesla's initial Dojo computer, is poised to benefit from the sales of thousands more GP US for the new installation, representing A considerable portion of the project's total cost and Nvidia's involvement in the Dojo project, It's expected to have a notable impact on its financials if the $500 million investment in GPU's. Were to occur in a single quarter.
Would constitute about 3% of Invidia's revenue based on their third quarter fiscal 2024 earnings. Now this relationship underscores the symbiotic dynamic between Tesla's AI initiatives and Invidia's growth in the GPU market. Let's move on to TSMC, which the world's foremost computer chip manufacturer also stands to gain from Tesla's expansion into AI computing. TSMC provides chips for both NVIDIA GPUs and also Tesla's
vehicles. Benefiting from the heightened demand for AI capabilities, the company anticipates its AI chip revenue to surge with projections of a 50% compound
annual growth rate. Tesla's plans for further Dojo supercomputers, including Dojo 1.5, Dojo 2, and possibly Dojo 3 or Dojo 4, show that they're continuously working for high performance computing in AI. Ongoing demand is crucial for both NVIDIA and TSMC, ensuring a steady flow of business from Tesla and potentially other tech firms investing in AI. Now, the importance of suppliers like NVIDIA and TSMC in the AI and computing ecosystem is increasingly evident.
Their contributions to building critical components for supercomputers like Tesla's Dojo, show that there's an interconnected nature of the tech industry and the importance of strong supply networks for technological progress. Now, recent comments from Elon Musk, Tesla CEO, regarding the Dojo supercomputer have led to speculation about the project's progress and Musk's confidence in its success.
And despite previously high expectations, Musk's current statement suggests possible challenges or even reassessments within the project itself. You know, Musk's somewhat confusing remarks on the Dojo project during an investor meeting have raised questions about Tesla's achievements in developing this supercomputer. These comments contrast with Musk's early enthusiastic narratives, hinting at potential obstacles or shifts in the project's trajectory.
Now, Musk's approach to discussing Tesla's projects, including Dojo, show that he has a history of bold visions, excitement, sometimes in advance of concrete results. This strategy has kept Tesla in the spotlight, of course, even as some initiatives face prolonged development and also unforeseen challenges like the $25,000 low budget Tesla
vehicle. Now, the discussion around Tesla's Dojo and Musk's recent statements show that there's been past instances where Musk used hype to garner interest even when projects were in very early stages, like Pre, Pre, Pre, Alpha. And this tactic has been effective in maintaining interest in Tesla's innovations and blowing up the stock, despite the complexities of bringing ambitious projects to fruition.
Also, Tesla's stock performance has been influenced by various factors, including Musk's public actions and ambitious projects like Dojo. And despite these setbacks, there's still investor optimism about Tesla's potential impact on AI and autonomous driving has seen in market reactions to Dojo
related news. Now, the evolving nature around Tesla's Dojo project, from groundbreaking supercomputer to current uncertainties, exemplifies the challenges and complexities of technological innovation and also building an AI model with thousands of GPUs. Now, Tesla invests millions of dollars in AI and supercomputing, and it not only impacts its business, but also shows that there's going to be a relevant AI increase across all industries.
High performance computing is essential for advanced AI applications, and it shows that technology is shifting towards artificial intelligence for everything. For NVIDIA and TSMC, Tesla's Dojo project is indicative of larger industry trends where demand for AI and machine learning drives the need for specialized hardware and chip
manufacturing capabilities. As Tesla pushes forward with its AI and supercomputing efforts, the collaboration with key partners like NVIDIA and TSMC will be critical.
Now, their expertise in GPU's and chip manufacturing respectively, plays a vital role in realizing complex projects like the Dojo supercomputer in Buffalo, NY and Tesla's expansion into AI. More so than what they've already done with their vehicles in the development of Dojo supercomputers show that Tesla and Elon can work well with other companies, other suppliers to get the job done. And it's an unpredictable nature of cutting edge technology that
keeps Dojo in check. There is complexities and uncertainties that accompany the forefront of the tech innovation and the tech industry. Hey, thank you so much for listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it. It helps out the show tremendously and you'll never miss an episode.
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